July 2020 Market Report

** Data in this report reflect market activity from JUNE 2020 compared to the previous month and year. Information is gathered from the Reno-Sparks Association of Realtors® (RSAR) for the Greater Reno-Sparks region via Northern Nevada Regional Multiple Listing Service (www.nnrmls.com). Data accounts for single-family resale residences only, and excludes townhouses/condos, manufactured/modular and new construction.

Here is the market overview:

And here are a more detailed look at the stats for June 2020 compared to the previous month and year:

In May 2020, the Median Sales Price for single-family re-sale properties in Reno-Sparks combined was $407,000, a 1.8% increase from both May 2020 and June 2019. The median sales price over the last year has hovered around the $400k mark and appears to remain steady at this time largely due to high buyer demand and low inventory.

# of Units Sold leaped 32%, month-over-month from 396 to 537. The sales volume in the month of June, was down just 6% compared to June 2019. This statistic represents properties that most likely went into contract in May this year. As a side-note, 37.6% of the sold inventory closed with a sales price between $300,000 and $399,000. Only 1 single family residence sold under $199,999.

Months Supply of Inventory (MSI) is down 41% from May 2020 and plummeted 48% from the same time last year. MSI absorption rate accounts for the time it would take to “sell out” of the Reno-Sparks inventory at the current rate of sale if no new listings were to come to market. A balanced market is around 5-6 months of supply. The 1.3 months supply, is very much in a “Seller’s Market” as it is well below the balanced level.

As observed in the graph above, the Months Supply of Inventory is extremely low for properties selling under $750,000. The inventory supply increases to a more balanced level for properties selling over $750,000 with a slight edge for the buyer in this price range.

The Average # of Days from Listing to Contract in June 2020 inched up a couple of days to 40 days. Single family residences are taking about 7% longer to sell this year than in June 2019, and 5.5% longer than May 2020. These averages account for all price ranges.

Above is the breakdown of the Average Days to Contract by Price Range in June 2020. Note that only 1 single family residence sold under $200k in June 2020 and it took 2 days to obtain an acceptable offer.

Sellers continue to receive an average of 98.9% of asking in June 2020. This statistic has held fairly consistently over the last few years. Please note that price reductions may have occurred prior the acceptance of an offer.

What is a distressed sale? It is a sale caused by economic hardship. A short sale occurs when a homeowner defaults on his/her mortgage payment and is unable bring payments to the lender current, and is therefore forced to sell the property for less than the balanced owed. A Foreclosure occurs when a lender repossesses real property after the borrower defaults on the loan and does not successfully sell it prior to this event. The percentage of distressed sales on the market declined 7.3% month over month, and is 27.5% lower than in June 2019. Only 1.4% of homes sold in June 2020 were considered “distressed.”

Since the April 2020, the # of New Contracts has doubled (during May and June 2020). June 2020 saw 27.5% more New Contracts (779) than the same month last year.

# of New Listings to hit the market in June 2020 increased by 8% month-over-month. Our # of New Listings in June 2020 are down 17% from the same period of time last year.

SUMMARY:

The absorption rate at 1.3 Months Supply of Inventory is the lowest it has been since April 2018. On average, at the current rate of sale, the active inventory would be completely absorbed in 1.3 if no new properties were brought to market. Inventory, in general, is extremely low and moving very quickly (particularly homes priced under $750k).
The Median Sales Price at $407,000 is slightly higher month-over-month and year-over-year (+1.8%), continuing to hold steady through the economic recession due to COVID-19.
Distressed sales still comprise a very small percentage of the active inventory… only 1.4% of all single family residence sales in June 2020.
The # of New Listings for June 2020 inched closer to more typical levels for this time of year.
The continued increase in the # of New Contracts for June at 779 indicates an increasing level of purchasing activity in our area.
If this the right time for you to make YOUR move? Whether you are buying, selling or doing both, I would be happy to assist you in coordinating your efforts for smooth transactions and transitions. Email me at dhallerbach@intero.com or reach me directly at 775-233-0682.